Top 10 lists may be funny for David Letterman, but Austin, Texas-based Field Asset Services (FAS) has compiled its own list that is anything but amusing: the Top 10 Code Violations relating to the maintenance of foreclosed and real estate owned property.
FAS' data is based on the input from 30 mortgage and asset management companies servicing more than 130,000 active properties on a recurring basis.
The list includes the following code violations:
1. High grass and weeds
2. Nuisances, such as abandoned vehicles and trash at the curb
4. Open or vacant structures
5. Junk, trash and debris
6. Minimum housing standards or habitability usually pertaining to the condition of the property
7. Substandard structures such as dilapidated sheds or detached garages
8. Unmaintained or unsecured swimming pools
9. Dead trees and landscaping
10. Vacant property registration
‘Cities and local municipalities across the nation are becoming more vigilant toward issuing code violations to reduce blight and improve neighborhood conditions,’ says Dale McPherson, CEO at FAS. ‘With foreclosure timelines reaching nearly 21 months, these fines can add up over time, even exceeding the value of the property itself in some cases. Being aware of code compliance trends, becoming more knowledgeable about the compliance process, and opening up the lines of communication will help property preservation companies, banks, servicers and agents manage this new level of code compliance more efficiently and cost-effectively.’
The top five states receiving violation citations for these code violations are Florida, California, Illinois, Texas and Nevada.
‘Understanding which states cite the most violations and which violations are cited more than others will help banks and servicers better manage the properties in these areas,’ McPherson adds. ‘For example, if a bank owns a property in Florida and knows that area focuses on pool and lawn maintenance, then they can proactively ensure their field service provider is maintaining those aspects before a violation is cited.’